Finding Text
Federal Agency: Department of Health and Human Services Federal Program Name: Aging Cluster Assistance Listing Number: 93.044, 93.045 and 93.053 Pass-Through Agency: State of Connecticut Department of Aging and Disability Services Award Period: 10/1/2024 to 9/30/2025 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to submit quarterly expenditure reports to the funding agency. These reports were timely filed however the amount of expenditures was not accurate due to allocations of expenditures made at year-end. Condition: The Organization has an approved Cost Allocation Plan, however nonpayroll expenses were not allocated following the approved plan and were required to be allocated at year-end. Therefore, the total quarterly report expenditures does not agree with actual total expenses. Questioned costs: None Context: The fourth quarter expenditures reports were obtained and compared to actual reported expenses for each major program. Cause: Management was not aware of the allocation compliance. Effect: The effect is that expenses charged to the federal awards potentially could be in excess of actual allocated expense incurred. Repeat Finding: Yes, 2024-004 Recommendation: We recommend that the Organization fully utilize the accounting system as intended to track daily financial activity. We also recommend that they formalize monthly account reconciliations and year-end closing procedures to ensure that all transactions are properly recorded in the appropriate account and the correct period. Views of Responsible Officials: There is no disagreement with the audit finding.